ITV chief executive Dame Carolyn McCall has said the company initiated the deal for Sky to buy ITV's media and entertainment division. ITV struck the agreement in July, in a move which will create a major competitor to the global streaming giants.
The sale includes ITV's terrestrial TV channels and streaming service ITVX, but does not include its production arm, ITV Studios, which makes shows including I'm A Celebrity and popular dramas such as Mr Bates Vs The Post Office.
ITV approached Sky
Speaking at the Royal Television Society London Convention, Dame Carolyn said: "Can I just be clear? We approached Sky. We felt they were the single best partner. The whole executive team was supportive."
She added: "We've worked with Sky well in partnership. This is not a merger, this is Sky buying ITV media and entertainment."
Dame Carolyn, who has been chief executive since 2018, said everyone working in ITV sees the reasons behind the deal. She said: "We love what we do in media and entertainment, it matters in ITV. If you talk to anyone in ITV, they would say 'We see the reason.' The competition is ferocious. It's not just bigger, it's the investment. Content is where it's at, that's what makes you all your money."
Future of ITV Studios
Asked if her job would be done if the deal goes through, Dame Carolyn replied: "I don't know. The way this deal came about is, we started working much better with them as partners. Clearly, we had to be on their platform. We have a big contract with Sky and that led to us working on trying to bring our streaming businesses together, and we realised because of our different ownership structures, it was impossible. We knew, for both of our business, we had to change."
ITV Studios will become a "pure-play global content business" with its shares listed on the London Stock Exchange following the sale, and a long-term agreement to supply content to the newly combined Sky and ITV, according to the broadcaster.
Dame Carolyn addressed this, saying: "ITV Studios will be the listed company, will stand alone, if this deal goes through and is approved by the regulators. We know it is capable of standing as a standalone business. It's got the most incredible talent." She added that it is a "really strong business".
Sky's vision for the platform
Chief executive of Sky Studios, Cecile Frot-Coutaz, also discussed the deal at the convention, saying she envisioned it as the creation of a new British-focused streaming platform. She said: "Comcast has owned Sky since 2018 now, and if anything, there's been more investment in British content. The vision for this is very much a streaming platform for the British viewer. We're bringing together two big UK media companies, and that's where the strength of the transaction is."
